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Summers on Regulation... Before the Deluge

Last night I listened on my I-Pod to editor Michael
Kinsley go on about his new book, Creative Capitalism.The premise of it seems to be that a
new and socially responsible sort of entrepreneurism may be a creative way to
help solve the world’s ills.Or not.Hard to say, Kinsley says.You have to read the book.Lots of important and influential
people talked to him and they have some great ideas.

Or not.

In the or not category, Kinsley noted a contribution by
Larry Summers, who speculated that corporations aren’t exactly designed to make
our lives better and that when they make claims in this area, we ought to watch
them carefully.OK, not so
original, but not hard to sign on to.

But Kinsley went on to intone about how great it is that corporate
folks like Bill Gates make tons of money, then go on to give some of it
away.Isn’t that nicer?Well, I guess… if you forget all about
the anticompetitive legacy of Microsoft, sure.It’s lovely that he has religion now, after amassing his billions.

So this morning, I see in his blog that Ezra Klein hasactually
cracked the Kinsley book.Summers apparently went on to say that even though they are
only out to profit for themselves, corporations and financial funds shouldn’t actually be regulated.That’s also
bad.Really?

Apparently, Summers thinks hedge funds
are the answer to our problems, exactly because they aren’t regulated… cause he
didn’t regulate them and their favorite products, derivatives, when he had a
chance to.So the fact that
they’re going under left and right shouldn’t embarrass him, correct?

Well, he said that earlier this year, so I guess he might
have changed his mind…

Gee, I hope President Obama listens to Summers lots and lots... Or not.